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Dive Brief:

The increase was in part attributable to the company's membership growth of 1.1 million customers. More than 650,000 came from the company's acquisition of Group Health in Washington state last February.

Oakland, CA-based Kaiser opened San Diego Medical Center, its 39th hospital, in 2017.

Dive Insight:

EVP and CFO Kathy Lancaster said 2017 performance was in line with expectations.

Operating income was 3% of operating revenue, or $2.2 billion, which did not increase or decrease year-over-year.

Net income was $3.8 billion in 2017, up from $3.1 billion in 2016. Capital spending also rose to $3.3 billion, compared to $2.8 billion last year.

"Despite uncertainty throughout 2017 in the healthcare industry, we continued our solid performance, delivering membership growth and increased access to high-quality and affordable health care and coverage," said Kaiser Chairman and CEO Bernard J. Tyson.

Kaiser said an investment in technology and facilities was related to its increase in capital spending. The company highlighted investments in services including secure messaging, telehealth, worksite clinics and mobile health efforts.​

The investments and recent acquisition point to the continued movement to outpatient and telehealth settings as companies adapt to the changing healthcare market.

The Group Health acquisition allowed Kaiser to expand its footprint in Washington state. The company extended its brand to an additional 19 counties in the Evergreen State, including 25 primary care clinics in 17 cities, three urgent care facilities and four outpatient surgery centers.

Kaiser Permanente stated it will invest $1 billion to expand and modernize the facilities and technology.